Brand Extension Fit And Extension Of The Relationship Of Evaluation And Brand Image

Brand extension has become a quite useful new product strategy. We can also find so many failed extension cases in the market. How consumers evaluate the brand extension process is critical, which is always the focus in brand extension related researches. Brand extension breaks the balance between existed products and parent brand, and brings the variety of market positioning. It is also worth researching whether brand extension will influence the brand image and company's long-term development.This study analyzes the relation between perceived fit and evaluation of brand extension, brand image and evaluation of brand extension. We also analyze the moderating effect of pre-brand image. In order to know the effect of brand extension on brand image, we compare the image in different conditions.In our experiment we design three horizontal brand extension strategies, and use two questionnaires. Based on 173 valid consumer data, we analyze the relationship between variables. The empirical results support most of our hypothesis. The main conclusions are showed as follows:(1) Consumer perceived fit can positively affect the evaluation of brand extension significantly. Fit can be measured by similarity and transfer within products. Transfer has stronger effect on evaluation.(2) Brand image is consisted of perceived value, brand personality and organization image. Consumer evaluation can positively affect the brand image after brand extension. The effect on perceived value is most, while on brand personality is moderate, and on organization image is least.(3) The brand image before brand extension can moderate the relation between perceived fit and evaluation of brand extension.(4) The effect of perceived fit on post-brand image is indirect, which is mediated by the evaluation of brand evaluation.(5) Horizontal brand extension can dilute the brand image. The image after brand extension is significant lower than the pre-image.(6) Different extension strategies have different effects on brand image. When the perceived fit is lesser, the image after extension is lower.